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The administrators of the FTX bankruptcy case are constantly identifying crucial problems that could have caused the disaster. Remember that the exchange crisis last year was caused by the founder and CEO Sam Bankman-Fried mismanaging the consumers’ monies.
The US Federal Reserve’s FTX Task Group has just learned that SBF and a few senior Alameda Research personnel borrowed and received $3.2 billion from both platforms. This finding was disclosed by the FTX Debtors in their most recent financial statement filing. Together with this, they also spent money on personal costs.
The task team and its new CEO John Ray III have been monitoring the exchange’s finances since FTX’s demise to ascertain the diverted sums. They stated in one of the records that the exchange is missing more than $8 billion.
New financial figures submitted to the Delaware Bankruptcy Court, according to FTX debtors, demonstrate that SBF and senior Alameda executives accepted billions of dollars in loans and payments. Moreover, it revealed that additional money originated from the Alameda Research trading firm.
FTX co-founder Gary Wang, its previous director Nishad Singh, and Caroline Ellison, a former CEO of Alameda Research, are among the senior executives. The other two winners were John Samuel Trabucco, a former co-CEO of Alameda Research, and Ryan Salame, a former co-CEO of FTX Digital Markets.
The most substantial portion of the missing money, $2.2 billion, was discovered to have been received by Sam Bankman-Fried alone in the filing. According to a further analysis, Gary Wang earned $246 million and Nishad Singh received $587 million. With the money, Ryan Salame took home $87 million, Caroline Ellison took home $6 million, and John Samuel Trabucco pocketed $25 million.
These sums only included loans and payments; they excluded any additional amounts that did not fall into either of the two categories. For instance, the top brass gave to charities and political causes while spending $240 million on opulent homes in the Bahamas. Also, they made several sizable transfers to other, unrelated businesses.
The current FTX administration is acting to recoup the monies that the prior executives plundered, according to a statement it made last month. It also stated intentions to take possible legal action against the recipients of the monies.
Significantly, FTX debtors spoke privately with political action committees, public leaders, and other beneficiaries of compensation or gifts from SBF or other executives. The cash had to be returned by February 28 in order for the debtor to file a lawsuit to recover the money.
Nevertheless, the management added that it was unable to foresee the timing of the move or the financial gains the exchange would get. But, Singh, Ellison, and Wang, three executives, pled guilty to the allegations and are now working with the federal prosecutors.
